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Income Tax Act 2007

Definitions and related matters - Associated persons and nominees - Table Y1: Associated person rules

YB 4: Two relatives

You could also call this:

“Rules for when two relatives are considered associated for tax purposes”

You are considered associated with another person if you are closely related to them. This can happen in a few ways:

  1. If you are closely related by blood. This means you are no more than two steps away from each other in your family tree.

  2. If you are married to each other, in a civil union, or in a de facto relationship.

  3. If you are closely related by blood to someone’s spouse, civil union partner, or de facto partner.

For some specific parts of the law about land and livestock, you are only considered associated if one of you is the infant child of the other.

You are not considered associated with someone if you can’t reasonably be expected to know they exist or that you are closely related to them.

These rules are part of the Income Tax Act 2007 and help determine when people are considered to be connected for tax purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523005.

Topics:
Money and consumer rights > Taxes
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YB 3: Company and person other than company, or

“Rules for determining connection between companies and individuals based on voting or market value interests”

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YB 5: Person and trustee for relative, or

“Trustees and relatives of beneficiaries are considered connected for tax purposes”

Part Y Definitions and related matters
Associated persons and nominees: Table Y1: Associated person rules

YB 4Two relatives

  1. Two persons are associated persons if—

  2. they are within 2 degrees of blood relationship:
    1. they are married, in a civil union, or in a de facto relationship:
      1. 1 person is within 2 degrees of blood relationship to the other person's spouse, civil union partner, or de facto partner.

        1. For the purposes of the land provisions and sections EB 13 (Low turnover valuation) and EC 5 (Transfer of livestock because of self-assessed adverse event), subsection (1)(a) and (c) does not apply, and persons are associated persons because of a blood relationship only if 1 is the infant child of the other.

        2. Repealed

        3. A person is not associated with another person under this section if the person cannot reasonably be expected to know that—

        4. the other person exists:
          1. the person is within 2 degrees of blood relationship to the other person.

            Notes
            • Section YB 4: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
            • Section YB 4(3) heading: repealed, on , pursuant to section 115 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
            • Section YB 4(3): repealed, on , by section 115 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).